Shoe prices increased in August in tandem with overall inflation, according to the latest data from the Footwear Distributors and Retailers of America (FDRA).
In August, retail prices of footwear climbed 1.4 percent, the most in 17 months and at the second fastest rate in 33 months, the FDRA noted.
This comes as prices were generally higher across each target market last month. Women’s increased 2.8 percent, the most in 34 months, while children’s shoe prices ticked up 0.9 percent, the fastest so far this year. But men’s footwear prices edged 0.2 percent lower in August but still have risen fourteen of the last nineteen months.
Gary Raines, chief economist at FDRA, told FN that besides creeping inflation, another key driver behind rising footwear prices are “onerous” tariffs.
“These tariffs disproportionately impact the footwear market, given that more than 98 percent of footwear sold at retail is sourced abroad,” Raines said. “In the latest month, duties paid on footwear imports soared a near-record 108.7 percent year-over-year to an unprecedented $635.8 million. Recall we’ve shown before the year-over-year changes in duties paid have moved in step with year-over-year retail footwear prices. The recent streak of surging duties paid on footwear imports strongly suggests retail footwear prices may climb even further.”
Nate Herman, senior vice president of policy for American Apparel & Footwear Association (AAFA), added that the organization continues to closely watch federal pricing data, which shows inflation still on the rise in August.
“As we close out the summer and the back-to-school season and look ahead to the holidays, we are worried about this pattern persisting due to continued high tariff rates,” Herman noted. “Smart trade policies, more tailored to this industry that avoid double taxation, can help avoid chilling spikes on price tags for hardworking American families this winter.”
Last month’s increase in retail footwear prices also comes at the same time the Bureau of Labor Statistics reported that overall inflation continued to gain traction in August.
The bureau’s latest Consumer Price Index (CPI), a broad measure of goods and services costs across the U.S. economy, saw prices increase 0.4 percent on a seasonally adjusted basis in August, after rising 0.2 percent the prior month. Prices were also up 2.9 percent over the last 12 months, after rising 2.7 percent in March.
Excluding volatile food and energy costs, the core CPI rose 0.3 percent in August and increased 3.1 percent over the same time last year.
This marks the fastest increase in seven months and second fastest in 14 months. August also marks the fourth straight month that inflation has accelerated.